ERP Trends to Watch in 2024

Enterprise resource planning (ERP) technology has been around for decades, but it is constantly evolving in response to changing business processes and shifting user demands. 

The transition from on-premise systems to cloud-based solutions represents one of the most significant changes to the ERP ecosystem in years. But it is just the beginning, seeing as it has kicked off all sorts of exciting new ERP trends that are poised to reshape the customer experience and forever alter the way you run your business. 

With that in mind, here’s an exploration of future trends to watch in the new year. 

Why Companies Need to Pay Attention to ERP Trends

Before we get into cloud-based ERPs and the trends they are fueling, it’s important to consider why ERP trends are so important to begin with. Especially when business leaders are often taught not to buy too much into trends until they’ve demonstrated their staying power.

While that is still true, ERP trends don’t come and go as they do in retail or marketing. When an emerging technology, like artificial intelligence (AI) or machine learning (ML), makes its way into the ERP arena, it’s there to stay. 

Nevertheless, that’s not the only reason you need to keep up with ERP trends. Some other reasons include the following:

Staying ahead of Other Businesses

Just to be clear, you don’t need the latest and greatest ERP tech to stay ahead of other businesses. Instead, what you need is to ensure your ERP system is modern, agile, and adaptable. For instance, solutions such as Microsoft Dynamics offer exceptional scalability, and they can be augmented with third-party applications to maximize their efficacy. 

When you’ve got modern, customizable tools at your disposal, you’re better equipped to adapt to whatever challenges come your way. Plus, you can pivot when an unexpected challenge emerges while maintaining your position as a dominant brand within your vertical. 

A great ERP system will also help you access real-time data and obtain granular insights about business performance. You can zero in on specific processes, address inefficiencies, and continuously work to make your company more nimble and resilient. 

Better Serving Your Customers and Employees

One of the more recent ERP trends to come up involves the convergence of ERP with customer relationship management (CRM). By adopting an all-encompassing ERP-CRM solution platform, you can understand the customer journey as it relates to all of your other core business data.

That, in turn, provides you with the big picture and sets the stage for a frictionless, optimized customer journey that will differentiate your brand from the competition and help cultivate feelings of loyalty. Reducing customer turnover while maximizing their average lifetime value is a recipe for brand growth.

Using an all-in-one platform also makes life much easier for your sales and marketing teams. When everyone’s working within the same digital ecosystem, they can easily collaborate to the ultimate benefit of your target audience.

Moving to the Cloud

If you are using a legacy, on-premise system, you’ll be unable to tap into many of the latest ERP technologies due to the limited scalability and general rigidness of on-premise solutions. 

As such, moving to the cloud is a consistent theme among the latest and most prominent ERP trends. You can use these trends as selling points for mobilizing the C-suite to action and getting your staff on board. When everyone realizes the benefits of moving to the cloud and adopting emerging ERP tech, you’ll have a much easier time obtaining organization-wide buy-in. 

Modernizing Your Systems 

ERP trends represent the means through which you can modernize your pre-existing systems and make your business even more efficient. You may already operate a dynamic, cloud-based ERP platform. But if you aren’t embracing some of the latest trends, you are undermining your return on investment (ROI). 

Adopting mobile ERP tools, for instance, is a great way of deriving even more value from your existing technology platform. Your team can work from anywhere, whether they are in the office or on the go. 

The 8 Biggest ERP Trends in 2024

Several ERP trends are set to make a big splash in 2024. While not all of these trends may be relevant to your business, it’s important to know what the future holds for ERP technology as a whole so you can stay prepared and propel your organization forward. 

We’ve cut through the noise and highlighted a variety of trends that can help you condense your time to value. 

1. The Rise of Cloud ERP

If you aren’t already running your ERP on the cloud, there’s no better time to make the leap than now. There are limited instances where managing your ERP on-premise remains advantageous. And for most businesses, a cloud-based solution just makes more sense.

For starters, transitioning to the cloud is cheaper both right now and in the long run. You’ll avoid the huge upfront investments associated with an on-premise deployment, and most of your ongoing maintenance costs will be rolled into your monthly subscription fee, which takes the guesswork out of IT budgeting and lets you focus on the day-to-day running of your business. 

2. Two-Tier Systems

A two-tier ERP framework involves deploying a complex, enterprise-grade ERP solution for the core organization and a simpler, more cost-effective platform for all of its subsidiaries. It is a trend that is becoming quite common among major enterprises with multiple subsidiaries.

The two-tier ERP framework isn’t just a shrewd cost-saving maneuver. It also makes life easier for employees and mid-level managers of subsidiaries. Instead of having to learn the ins and outs of a complex new ERP system, they can adopt a simpler platform that is far more user-friendly and easy to implement. The end result is greater user buy-in and a more efficient implementation process. 

3. Digital Transformations Through ERP

“Digital transformation” may be a bit of a buzzword in the business world, but ERP is at its forefront. During digital transformations, businesses seek to digitize and streamline as many processes as possible so they can reduce costs and become more efficient. Integrating digital technology into all areas of a business can significantly boost revenue and competitiveness, too.

Cloud-based ERPs are often seen as a gateway to those transformations, as they incorporate multiple applications and bring dozens of business processes under a single umbrella. The latest cloud solutions even support the Internet of Things (IoT), AI, and ML, giving businesses the freedom to pursue ongoing modernization through one unified platform. 

4. Integration with Advanced Technologies

Today’s ERP systems are not stand-alone platforms; they are increasingly integrated with other technologies, like the IoT, which can improve core processes. ERP systems in retail, for example, can be linked with warehouse management systems to track goods movement or with eCommerce platforms to streamline online order workflows.

Another growing trend is the integration of ERP with social media, providing deeper insights into customer behavior and enhancing digital marketing strategies. Typically, you’ll need an ERP with a built-in CRM module to facilitate these types of integrations, but it still represents an exciting way to expand the scope of your business.

5. Greater Personalization

Gone are the days of one-size-fits-all ERP solutions; the current trend leans toward personalization—ERP platforms that can be easily customized to meet the unique needs of each business. 

The shift is crucial, as it enables you to focus on other areas, like delivering more personalized experiences. Cloud-based ERP solutions are leading the charge in that regard, offering low-code platforms that are easier to configure.

The best ERPs also provide a modular configuration, allowing you to choose which applications to implement and which to omit from your deployment. That flexibility keeps costs down while also ensuring you have the specific toolkit necessary to carry out your business processes.

6. AI-Powered Insight and Process Improvements 

AI is transforming ERP from a data processing technology into a true decision-making tool. By embedding it (and ML) into your ERP systems, you can gain new insights and optimize business processes.

Chances are high that you already have plenty of data, but you may not have the time and resources to act on it. That’s where AI comes into play. It is a force multiplier, especially when it comes to data analytics and reporting processes. 

7. Predictive Analytics 

Predictive analytics takes the guesswork out of business decision-making, giving you the confidence to act decisively when opportunities emerge. Instead of relying on days’ or weeks’ old data, you can use real-time information to predict what is likely to occur in the near future and adjust your business strategy accordingly.

In the past, predictive analytics tools were a separate resource, but today’s leading ERP systems have built-in predictive analytics capabilities, adding yet another function under a unified umbrella. 

8. Mobile ERP

The last, and perhaps most exciting, of the ERP trends of 2024 is the rise of mobile ERPs. Mobile ERPs allow you and your team to access your core enterprise resource planning solution from anywhere at any time. Having on-the-go access has become essential in the era of remote and hybrid work. 

Taking your ERP mobile can unlock all sorts of new possibilities for your business. Even if you aren’t offering hybrid or remote work, having a mobile ERP helps you stay connected to your business from anywhere. 

Capitalize on These ERP Trends

Don’t sleep on these ERP trends as you gear up for 2024. Remember, your ERP platform is the cornerstone of your business. Continuously optimizing it with the latest tech and features is always a worthwhile investment.

To take your understanding of ERP history and trends to the next level, dive into this short eBook on Composable ERP.